Brussels, 14/11/2013 (Agence Europe) - In 2012, the EU was hit by an extremely high number of bankruptcies followed by redundancy plans but the European Globalisation Adjustment Fund (EGF), however, was not used by member states to its full potential. According to a report adopted by the European Commission Thursday 14 November, only nine member states requested EGF allocations in 2012, totalling €58.5 million, despite €500 million being available.
Presenting his report to the press, Commissioner Laszlo Andor (employment) said, however, that “the European Globalisation Fund has proved to be an effective tool to help people who have lost their jobs, and in particular for lower-skilled and disadvantaged jobseekers”. The report indicates that “the results in terms of re-integration into employment are encouraging, given the current difficult job situation”. In 2012, the EGF subsidised reintegration assistance programmes for around 15,700 workers who had been made redundant. It has a success rate of around 50%, namely, one in every two workers over the past two years have found a job before the end of the aid period.
The Commission has therefore given the EGF a good report and is delighted that the existence of this fund is ultimately guaranteed in the next Multiannual Financial Framework period. One important point, however, of which it is critical, is that, despite the scope of the EGF having been extended (reintroduction of the derogation on crisis, including workers on temporary contracts, in addition to the self-employed and young people without work), its annual budget will be reduced from €500 million to €150 million. The Commission had proposed €429 million.
The paradox of this situation is that not one single funding ceiling has been reached since the EGF was set up in 2007. At the very most, €135 million was claimed over the period of the year. 2012 is hardly the finest example, given that EGF take-up was down by 43% in annual terms. This can partly be explained by the changes decided on at the end of 2011: the rate of co-financing was reduced and the economic crisis was no longer a valid reason for applying for EGF assistance. (JK/transl.fl)